Why Should You Add Riders to Your Life Insurance Plan?

What Does A Rider Mean?
Why Should You Add Riders to Your Life Insurance Plan?
Take Away

Today, life is definitely not guaranteed and uncertain, a single accident could destroy your loved ones' lives. It is necessary to ensure that the finances of the family are consistently stable, with a source of income, especially life insurance both in your absence and presence. However, it may not be enough to have a single insurance for all your needs. In these cases, riders come handy.

There might be many conditions where a single policy might not cover all your needs in the long term, in such a case buying another policy won’t be a sensible decision as it would only add the pressure of premiums on you. It is better to opt for supplementary plans which are commonly known as Life Insurance Riders.

What Does A Rider Mean?

An insurance policy rider is an addition or supplement to an existing insurance scheme which provides more coverage and risk protection. Riders are cheap add-ons which you may use to enhance your life insurance coverage for your existing term insurance policy. This is an addition to the basic policy for extending its coverage.

Riders can range from primary care to serious illness, accidental death or incapacity, educational and/or marriage expenses for your child, and so on. Riders can be applied to many kinds of insurance policies, for example terms, endowments, remittances and unit plans. It is tailored and adapted to the political owner's needs.

Why Should You Add Riders to Your Life Insurance Plan?

Instead of insurance plans, many small and large investors choose to invest in cost efficient riders, because riders cater most conveniently to your demands.

1. Single Policy With Multiple Benefits

You will give up buying multiple new policies and instead invest in comparatively cheaper and better options when you realise how versatile riders are and how quickly you can add them to your existing policies. Now that you have a single policy with riders that is adapted to your needs, just one policy is needed and you can dedicate all your attention to it. This also decreases your hassles while your insurance is managed.

2. Customize The Policy According To Your Requirements

The riders are suited to your policy, which can be modified to meet your particular requirements. You may select the riders' time periods, and in fact you can opt out, continue to benefit from their advantages, and add or remove some features throughout the time period.

3. Riders Give You Enhanced Protection

Riders are add-ons to your current insurance that may increase the coverage of your policies and eventually your maturity benefits, as your requirements necessitate. One of the principal reasons to add a rider to your term insurance is to protect your family's safety. The death benefit of a term plan is acceptable but it doesn't matter if you are injured and are unable to provide financial support for your family. Riders are significantly increasing protection from all threats when added to a term plan.

4. You Get Entitled To The Special Perks Of Riders

Riders have numerous specific benefits, such as payment exemptions in an emergency in which the premiums cannot be paid in addition and the option for returning the premium in case of an emergency in cash in response to a disaster.

5. You Are Eligible For Income Tax Rebate

Not only can riders help you retain your hard earned cash, but they also help you save taxes in accordance with sections 80C and 80D of the Indian Income Tax Act. You can save up to Rs 25,000 in total income tax per fiscal year by investing in riders instead of policies.

Take Away

A Rider is a suitable addition to your policy to assist you improve your policy in the long term, boosting the coverage and protection of your plan and protecting the future of your family. Therefore you should definitely think of adding riders to your life insurance plan.